Strawberries Consumed 0 1 2 23 3 4 5 6 7 Apples Total Utility Consumed 0 7 13 18 22 25 27 28 0 1 2 3 4 5 6 7 Total Utility 0 14 26 36 44 50 54 56 Assume that strawberries cost $1 and apples cost $2. If the consumer has $16, the bundle of goods that would maximize her utility per dollar leads to utility equal to utils.

Strawberries Consumed 0 1 2 23 3 4 5 6 7 Apples Total Utility Consumed 0 7 13 18 22 25 27 28 0 1 2 3 4 5 6 7 Total Utility 0 14 26 36 44 50 54 56 Assume that strawberries cost $1 and apples cost $2. If the consumer has $16, the bundle of goods that would maximize her utility per dollar leads to utility equal to utils.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter10: Consumer Choice Theory

Section: Chapter Questions

Problem 6P

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Quantity of Product Utility Utility A 1 234 5 6 7 Total Marginal Utility 16 30 42 52 60 66 70 16 1410 108 12 Marginal Quantity of 6 4 per Dollar ? ? ? ? ? ? ? Product Utility Utility B 123 + 4 5 6 Marginal Total Marginal Utility 7 30 46 61 75 88 100 111 30 16 15 14 13 12 11 per Dollar ? ? ? ? ? ? ? Your buddy Joseph wants your advice. He presents you with his utility schedule above and want to know how many units of Product B he should purchase to maximize his utility. He tells you the price of Product A is $4 and the price of Product B is $5. Joseph informs you he only wants to spend a total $27 on both products. How many units of Product B do you tell Joseph to purchase?
Digital Apps per Period 0 1 2 3 4 5 Total Utility of Digital Apps per Period (utils) which 0 50.0 95.0 135.0 171.5 200.0 Marginal Utility (utils) 50.0 45.0 40.0 36.5 28.5 Marginal Utility Portable per Dollars Spent Power Banks (price = $5.97) per Period | 8.4 7.5 6.7 6.1 4.8 0 1 GTA W N 3 4 5 Total Utility of Portable Power Banks per Period (utils) 0 25 47 65 80 89 Marginal Utility (utils) 25 22 18 15 9 Marginal Utility per Dollars Spent (price = $2.70) 9.3 8.1 6.7 5.6 3.3 Consider the table above. Suppose the consumer's income is $26. Does the consumer spend all of her income if she purchases the optimal quantities of digital apps and portable power banks? The optimum quantity of digital apps purchased is and the optimum quantity of portable power banks purchased is. (Enter your responses as whole numbers.) Spending on digital apps is $ and spending on portable power banks is $. (Enter your responses rounded to one decimal place.) Thus, total spending at the consumer optimum is $ the…
Elapsed time (in minutes) 30 60 90 120 150 Total utility of playing video games 20 45 63 78 83 Total utility of swimming 40 62 72 76 76 Jenny spends an average of $3 each hour she plays video games. What is her marginal utility per dollar for the second half hour?
Praxilla, who lived in ancient Greece, derivesutility from reading poems and from eating cucumbers.Praxilla gets 30 units of marginal utility from her firstpoem, 27 units of marginal utility from her secondpoem, 24 units of marginal utility from her third poem,and so on, with marginal utility declining by three unitsfor each additional poem. Praxilla gets six units ofmarginal utility for each of her first three cucumbersconsumed, five units of marginal utility for each of hernext three cucumbers consumed, four units of marginalutility for each of the following three cucumbersconsumed, and so on, with marginal utility declining byone for every three cucumbers consumed. A poem coststhree bronze coins but a cucumber costs only one bronzecoin. Praxilla has 18 bronze coins. Sketch Praxilla’sbudget set between poems and cucumbers, placingpoems on the vertical axis and cucumbers on thehorizontal axis. Start off with the choice of zero poemsand 18 cucumbers, and calculate the changes in…
Jeremy is deeply in love with Jasmine. Jasmine lives where cell phone coverage is poor, so he can either callher on the land-line phone for five cents per minute or he can drive to see her, at a round-trip cost of $2 in gasolinemoney. He has a total of $10 per week to spend on staying in touch. To make his preferred choice, Jeremy uses ahandy utilimometer that measures his total utility from personal visits and from phone minutes. Using the values inTable 6.6, figure out the points on Jeremy’s consumption choice budget constraint (it may be helpful to do a sketch)and identify his utility-maximizing point
Price of Can ofBeer $0.50 Cans per Week Price of Slice of Pizza = $1.00 Slices per Week %3D Total Utility Total Utility 1 15 1 32 2 29 2 63 42 3 91 4 54 4 115.75 5 65 136 75.75 6. 154 7 86 7 171 96 187 105 113 9 201 10 10 213 If this consumer has $10.50 to spend on cans of beer and slices of pizza in any given week, then what is the optimal combination of beer and pizza for the consumer to buy to maximize utility?
1. Does a dollar given to a rich person raise the rich person’s total utility more than a dollar given to a poor person raises the poor person’s total utility? 2. This week you have gone to two parties. Assume the total utility you gained from these parties is 100 utils. Then you go to a third party, and your total utility rises to 110 utils. What is the marginal utility of the third party attended per week? Given the law of diminishing marginal utility, what will happen to total utility and marginal utility when you go to a third party this week? 3. Suppose you consume 3 pounds of beef and 5 pounds of pork per month. The price of beef is $1.50 per pound, and pork is $2.00 per pound. Assuming you have studied economics and achieved consumer equilibrium, what is the ratio of the marginal utility of beef for the marginal utility of pork? 4. Explain the relationship between the law of diminishing marginal utility and the law of demand. 5. Using the marginal utility…
Elapsed time (in minutes) 30 60 90 120 150 Total utility of playing video games 20 45 63 78 83 40 62 72 76 76 Total utility of swimming ▸ Jenny pays $5 per hour to use the local swimming pool. What is her marginal utility per dollar for the first half hour of swimming?
Complete the following table. Instructions: Enter your answer for total utility as a whole number and your answer for marginal utility rounded to one decimal place. Units Total Marginal Utility Consumed Utility 10 32 3.2 20 2.8 30 86 40 111 50 2.4 60 158
Refer to the information provided in Table 6.1 below to answer the questions that follow. Number of Hamburgers per Day 1 2 3 4 Number of Sodas per Day 1 2 3 4 Total Utility 30 52 67 76 Total Utility 20 35 47 57 Marginal Utility Marginal Utility Question #33: Refer to Table 6.1. The marginal utility of the second soda per day is A) 10. B) 15. C) 35. D) 55. Question # 34: Refer to Table 6.1. The marginal utility of the third hamburger per day is A) 5. B) 15. C) 22.33. D) 119. Question # 35: Refer to Table 6.1. Diminishing marginal utility sets in after the A) first B) second C) third D) fourth Question # 36: Refer to Table 6.1. The total utility of five hamburgers per day is A) 80. B) 81. C) 96. D) indeterminate from this information. Question #37: Refer to Table 6.1. The total utility of five sodas per day is A) 35. B) 64. C) 92. D) indeterminate from this information. soda perday.
John likes Coca-Cola. After consuming one Coke, John has a total utility of 10 utils. After two Cokes, he has a total utility of 25 utils. After three Cokes, he has a total utility of 50 utils. Does John show diminishing marginal utility for Coke or does he show increasing marginal utility for Coke? Suppose that John has $3 in his pocket. If Cokes cost $1 each and John is willing to spend one of his dollars on purchasing a first can of Coke, would he spend his second dollar on a Coke, too? What about the third dollar? If John’s marginal utility for Coke keeps on increasing no matter how many Cokes he drinks, would it be fair to say that he is addicted to Coke? *use tables and/or graphs if possible, please original work
Rohan’s current marginal utility from consuming peanuts is 100 utils per ounce and his marginal utility from consuming cashews is 200 utils per ounce. If peanuts cost $0.10 per ounce and cashews cost $0.50 per ounce, is Rohan maximizing his total utility from the kinds of nuts? Instructions: Enter your responses as whole numbers. At the current level of peanut consumption, Rohan receives: utils per dollar.At the current level of cashew consumption, Rohan receives: utils per dollar.Therefore, Rohan maximizing his total utility because MUp/Pp is MUc/Pc.